Greek PM seeks EU help to break creditor deadlock

 

Greek PM seeks EU help to break creditor deadlock

AFP / Aris Messinis Greek Prime Minister Alexis Tsipras has said delayed reform talks with the country's EU-IMF creditors could conclude by May 1

Greek Prime Minister Alexis Tsipras on Wednesday sought help from the European Union to break a deadlock in critical debt talks as as his spokeswoman accused the IMF of "undermining" the process.
Tsipras' office said the leftist premier had asked EU President Donald Tusk to call a summit to help facilitate negotiations with the debt-ridden country's creditors.
The move came after an expected eurozone meeting on Thursday was postponed, scuppering Greek hopes for an agreement by Sunday to launch talks on debt relief.

Tusk said he had urged eurozone finance ministers to meet "within days", warning that failure to act could bring a repeat of last summer's drama that nearly saw Greece crash out of the eurozone.
"We have to avoid a situation of renewed uncertainty for Greece," Tusk said.
"Therefore we need a specific date for the new Eurogroup meeting in the not distant future, and I am not talking about weeks but about days," he added.
Greece is seeking to unlock promised cash from its massive 86-billion-euro ($95 billion) rescue package -- its third since 2010 -- that was agreed last year after months of tortuous talks with the European Union, European Central Bank, European rescue mechanism and the IMF.
- Anger over new 'contingency measures' -

AFP / Sakis Mitrolidis Greek farmers set up a blockade in February to protest a controversial pension reform, a term of the country's bailout

Greek government spokeswoman Olga Gerovassili said the International Monetary Fund was "undermining" the latest negotiations with demands that went beyond the bailout deal.
In particular, Greece believes the IMF is behind additional "contingency measures" which the eurozone last week demanded to conclude the current round of talks.
Greece has already pledged to save 5.4 billion euros by 2018 to meet bailout targets, but the new measures -- which the creditors want to be approved by parliament now and applied later if necessary -- could amount to another 3.6 billion euros according to reports.

Gerovassili said the new demands went "beyond the limits of the Greek constitution and the European legal system".
The latest creditor review, which is needed to unlock bailout loans for Greece, has been chiefly delayed by disagreements over pension cuts and non-performing bank loans.
Eurozone governments have also promised to offer Greece debt relief, one of the only concessions granted to Tsipras when he secured the bailout in July.

AFP/File / Molly Riley Eurogroup President Jeroen Dijsselbloem says more time is needed to decide on the next steps for Greek debt relief

Eurogroup chief Jeroen Dijsselbloem said on Tuesday that "more time" was needed to decide on the next steps.
"No additional Eurogroup on Greece this Thursday, more time needed," Dijsselbloem's spokesman Michel Reijns wrote on Twitter.
Dijsselbloem, the Dutch finance minister, had said earlier that a meeting could take place Thursday "to finalise as many things as possible" in unlocking bailout cash and triggering potential debt relief for Greece.

But he told Dutch broadcaster RTL-Z that the meeting would only happen if it had "a chance of succeeding".
The Greek government in July faces big repayments to the European Central Bank, amounting to about 2.3 billion euros ($2.6 billion).
Gerovassili on Wednesday said there was "no insecurity" regarding Greece's cash reserves.
A source with knowledge of the issue told AFP that Greece -- labouring under a 311-billion euro-debt mountain -- could handle payments without major difficulty until the end of May.
The government in recent weeks has gathered some 500 million euros from the cash reserves of state-run entities, including parliament and social security funds, the source added.
Greece's debt stood at 177 percent of gross domestic product (GDP) in 2015 -- almost twice Greece's entire economic output in one year
copy  https://www.afp.com/en/news/